What is a tax return?
A Tax return is a document that taxpayers use each year to report their income and personal circumstances to the tax authorities, who use it to determine their tax liability.
Individuals tax
If you are not familiar with the Australian Taxation System, preparing your individual tax return each year can be a little intimidating. Having a professional prepare and file your individual tax return has many advantages. These consist of:
- Registered tax agents, have experience with individual tax returns and can spot issues you might otherwise overlook.
- The absence of information on your tax return, whether intentional or not, may have unintended and detrimental effects.
Individual tax returns are less stressful when prepared with the help of a qualified tax agent.
Sole tradership tax
A sole tradership or sole trader is one of the most basic types of business structures. A simple and affordable structure with few legal requirements. However, you will remain liable for all of your company’s legal obligations, including any losses and unshakeable debts.
As a single proprietor, you are entirely accountable for whatever taxes your business owes because the income from your business is recognised as an individual’s income. Additionally, if you continue operating your firm as a sole proprietor or sole trader you are eligible to register for an Australian Business Number (ABN) using this number.
Partnership tax
An annual Partnership tax return must be filed with the Australian Taxation Office by a Partnership (ATO).
The ATO will get information about business income, costs, and financial status from the partnership tax return.
According to the terms of the partnership agreement, the partners will divide the partnership’s nett income (revenue less expenses).
Trust tax
Trusts are frequently utilised for commercial and investment purposes. In Australia, their main goal is to give people a way to leave specific assets—whether they be personal or business—to beneficiaries while protecting those assets from creditors. In general, trusts that receive revenue throughout the year are required to file an income tax return.
SMSF tax
A Self-Managed Superannuation Fund (SMSF), which is taxed favourably at 15%, is essentially a trust that has been registered with the ATO to cater for the retirement of its members.
An SMSF tax return is filed yearly and must include complete information on income, taxes, contributions, and other legal elements.
As required by law, this information is documented and provided to the ATO.
People who want flexibility in the investment of their superannuation assets, such as the real estate sector, are drawn to SMSFs.
Whatever your tax set up, business structure, our indeed if you don’t currently have one yet, let us handle the headache of your tax return.
Contact us today at Safio Tax Accounting Services.